MassMutual stated that the sale price includes $1.01bn (HKD7.9bn) in cash and 800 million shares of Yunfeng FG stock, which represent 24.8% stake. In turn, Yunfeng FG will hold 60% of stake in MassMutual Asia, with seven other investors holding the remaining 40% of the stake.

MassMutual chairman, president and CEO Roger Crandall said: “This represents an additional step in MassMutual’s evolving international strategy by building distinct, mutually beneficial partnerships with successful, cutting-edge companies throughout Asia, further strengthening our ability to provide long-term value to our policyowners and customers.”

MassMutual International chairman, president and CEO Eddie Ahmed said: “This transaction provides us with the ability to capitalize on the long-term success and value of MassMutual Asia, creating a true, full service financial services firm, well-equipped to serve a wide range of customers – from high net worth individuals to an emerging universe of customers with rising incomes.

“Further, through our ongoing stake in the combined Yunfeng and MassMutual Asia business, we will continue to capitalize on an expanding number of opportunities in this tremendous, growing and dynamic part of the world.”

As mentioned in the sale agreement which was first announced in August 2017, the American insurance company will have a representation on both the Yunfeng FG and MassMutual Asia boards of directors.

Furthermore, the two companies will enter into a partnership to explore business cooperation opportunities.

Yunfeng FG chairman Yu Feng said: “The long term vision of Yunfeng FG is to leverage its fintech capabilities to develop a financial service ecosystem that offers a broad range of financial services and products, along with high quality expert advice.

In May this year, The Massachusetts-based insurance company sold 85.1% stake of its Japanese insurance business to Nippon Life for $955m (JPY104.2bn). The company stated that this move aligns with its international strategy to forge distinct, mutually, beneficial partnerships to capitalize on emerging global opportunities.